Paper maker shrugs off storms with double digit growth
LISTED Cumbrian paper maker James Cropper has seen full year turnover and profits climb, despite weathering Storm Desmond over Christmas.
The Kendal-based company’s turnover increased 5.7% to £87.9m (2015: £83.1m) while pre-tax profits rose 48% to £5.2m (2015: £3.5m), excluding the impact of IAS 19 pension adjustments.
The group, which emplys 540 staff, said its performance was a testament to the investment strategies introduced and deployed in the last few years.
Mark Cropper, chairman, said: “Although we will be catching up with a number of deferred repair projects in 2016/17, growth will continue to be delivered with further capital investments across all divisions in support of focused market developments and group wide efficiency improvements. These give me confidence that the group will continue to advance for some years to come.”
He added that the double digit growth would not have been achieved without a significant improvement to the operational efficiencies of existing plant.
New subsidiary James Cropper 3D Products, which makes sustainable moulded fibre products, made “good progress” with more expected in the coming year, the company said.
“This initiative resulted directly from the board’s decision to create a new Technology & Innovation Department in early 2014. While it is still early days, we are hopeful that 3DP will provide another growth platform for the group,” said Cropper.
He also paid tribute to the workforce’s response to Storm Desmond at the Burneside facility.
“Hardly a single employee did not contribute to the recovery in some way, and many gave up their Christmas break to get us back on our feet. The turnaround was impressive, although the event was not without consequences,” he said.
Around £700,000 of site wide repair projects were postponed as maintenance teams focused on recovery, which will be completed in the 2016/17 financial year. Net exceptional cost of £770,000 were incurred in the year as a result of insurance excesses, uninsured losses and the award of a grant to alleviate the impact of the flood.
